Final bow? N.L. Folk Festival ends with uncertain future

CBC

a day ago

Bannerman Park in St. John's was filled with jigs and reels on Sunday, as the 49th annual Newfoundland and Labrador Folk Festival drew to a close — possibly for the final time.
After a year of dire financial problems, Newfoundland and Labrador Folk Arts Society board president Julie Vogt told CBC News the organization needed more money and more tickets sold to make the push to its golden anniversary next year.
"It's heartbreaking. It is gut-wrenching. It is wrong in our opinion. It is the most devastating thing, I think, in my career," said Vogt on Sunday.
Many attendees had mixed feelings, too, as they hoped this year's festival wouldn't be the last.
Volunteer Carole Moody said she'd like to see more local talent.
"I don't think that necessarily the huge artist from away [is needed]. I mean, there's lots of other festivals locally that offer those [opportunities]," she said.
Volunteer Tom Power is remaining optimistic that this year wasn't the last.
"I know there's not a lot of people here this year but, you know, in the past years they've been here," said Power. "I think they just need to go back to their roots … something a little smaller."
For 16-year-old fiddle player Sadie Greene the folk festival is an exciting opportunity.
"They had Serena Ryder … [Saturday] night, and that was great, but I think they should have Newfoundland singers headlining each night," she said.
Finances under scrutiny
Vogt shared publicly the society's financial hardships earlier this year, which resulted in fundraising efforts to keep the festival going.
Former board member and society vice-president Anthony McDonald has been a vocal critic of the operations, and said he has even been banned as a member and from attending the festival.
The Canada Revenue Agency reported that the festival earned around $1.2 million last year, but spent around $1.4 million.
McDonald said that money was overspent on staff.
"As culturally important to Newfoundland as this [is] … we've probably overspent into oblivion now," he said.
CBC News obtained a copy of a financial audit conducted by Bartlett Chartered Professional Accountants. The audit found that the society used restricted funds, meant to be held for unexpected events, without the board's approval.
It also criticized the appointment of three roles — board chair, treasurer and executive director — to one person, Julie Vogt.
Accountant Richard Bartlett wrote in a letter that the society faces high financial, operational and reputational risks due to "inadequate segregation of key responsibilities."
"This lack of separation has compromised several internal controls, thereby increasing the organization's vulnerability to errors, fraud, and collusion," Bartlett wrote.
WATCH | The folk festival exits stage left — potentially permanently:
The N.L. Folk Festival takes a bow for this year — and could be turning out the stage lights
14 minutes ago
Duration 2:59
The 49th annual Folk Festival wrapped up in Bannerman Park on Sunday, with lead organizers saying its days are likely numbered. The CBC's Abby Cole was there to take the temperature of festival goers.
The audit also found that bank reconciliations were not performed, and that the society's financial policies manual was outdated.
Vogt acknowledges the society's shortfalls, but said nobody stepped up to fill the treasurer role, which resulted in eight months of no financial statements and poor decision making.
As for the money spent on staff, Vogt said they deserve to be paid.
"Just because we work for a not-for-profit does not mean we don't have bills to pay. We have children to raise, we have food to put on our table," she said.
Vogt chalked up the festival's demise to people not being interested in going anymore.
"We are not the chosen ones, unfortunately. They would rather see others," said Vogt.
Grim future for folk society
Vogt gives the society about one more month, unless an angel donor steps in.
If by some chance the festival continues into its 50th year, McDonald said he'd like to see more folk artists on the board itself.
"I'd like to see some more open mindedness, more consultation with the community, less happening behind closed doors," he said.
"I like to see it get back to the way it was. A board of people who really care about the organization, and are there just because they want to see it survive."